$125 Crypto Challenge

DaxTrader $125 Crypto Challenge

DaxTrader.co.uk

$125 CRYPTO CHALLENGE

One-Twenty-Five To A House With A Drive

Preamble

The idea for this project is to trade with $125, and make enough profit to buy a house. I will need to use all of my ninja skills here. Now those who know me and have followed the website for some time know that I am a Trader and Chief Market Analyst for this website, and I enjoy projects. My last project was to learn how to program an algorithm (using MQL4) that can trade my personal money on the financial markets. Well, I have completed that project now, I now understand how to program function calls, I built the algorithm, tested it, it’s passed its testing and is now performing very well so far (results are about half way down this page here: https://www.daxtrader.co.uk/about-daxtrader-premium/)

So now I have a new project.

In recent months I have become obsessed with trying to understand cryptocurrencies and the formation of the new monetary system, which is happening right now under our noses. As one financial system dies a new one must be ready to take over from the ashes. The current system is doomed, thanks to ridiculous fiscal policies from wildly reckless central banks, because the inflationary nature of state debt will exponentially grow when interest rates increase, and it’s dead on its feet.

The framework for the new financial system has already been created, but so few people know or understand anything about it. They may have heard of BitCoin in the news, but probably don’t really understand how small a piece of the puzzle BitCoin actually is. So I need to learn as much about it as possible to be ready for it.

How I got Started

Created a cryptocurrency account with BitFinex

Transferred 3 LiteCoin from my Coinbase wallet to BitFinex

Sold the LiteCoin on the market using BitFinex

Began buying alternate cryptocurrencies

RULES

No additional deposits can be made

Must only trade from the profits I make on the trades

No withdrawals until the goal is hit or I lose it all

Can use a hardware wallet to protect the coins if needed

24/01/2018

Minor Crypto Meltdown Update!

So I decided to hold on to my hat during this minor inconvenience (some called it a cryptocurrency capitulation – I think it’s just a standard correction). I have been trading for many years and I know a corrective pullback when I see one. I am of the belief that this is a corrective pullback and no more.

Why do I still believe in cryptocurrency?

You genuinely believe that governments still hold all the power? FIAT currency retains its value due to supply and demand. Let’s examine one example of an issue here: The US cannot raise enough taxation receipts to cover its required spending, so relies on the generation of new debt to cover the difference. When the US interest rates increase to the point of failure to repay their own debt obligations (bonds) – and issuing more debt is no longer fiscally prudent – what happens to the dollar? It fails. It’s basic economics. What’s the alternative?

But surely the true value of crypto is zero in the long run, governments won’t allow it.

I don’t think this really stands up. “The true value of crypto is zero in the long run. ” The concept of decentralised, peer to peer transactions, has simply birthed a new monetary framework. The current crypto currencies are generation one and two. Like the pager and the Nokia 3210 were. We are yet to see the flip phone and smart phone equivalents in the cryptography world and once we do, we welcome global utilisation and a replacement monetary system.

I continue to hold.

Updates

I used some dollars to buy a little ETH (to get free tokens from Polymath – but decided against the free token proposition because I don’t believe in Polymath.)

09/01/2018 – Ripple Has Tanked A Bit

After an incredible rally, the retracement was inevitable

The meteoric rise of Ripple was incredible, running up into second place on the Cryptocurrency market cap rankings, overtaking 4 or 5 others in the process.

However, the gains have allowed a lot of profit taking and when you factor in the additional supply from the billion-coin-escrow, it’s only normal that this incredible rally would retrace. So I am still of the opinion that ‘retracement’ is all we are seeing. I appreciate that cryptocurrencies do not always conform to traditional technical analysis, but retracements are the exception.

So what now?

I still continue to HODL. I am still scoping out the next trade and the shortlist remains in place. No further trades have happened this week.

Shortlist?

IOTA, EOS, NEM, NEO, OMG, Verge

03/01/2018

No changes yet – but I am starting to scope my next trade

Holding Ripple (XRP) has been one of my best ever trades, in terms of return. I bought these at around $0.20 and they’re now trading well over $2, so without doing anything at all, the portfolio has increased, again. I am enjoying this particular trade. But I do appreciate that it will not remain this positive, so the key is to not get excited or emotional about it. Just keep going.

28/12/2017 – Christmas update

Ripple is currently the only coin in Green today. Crazy!

Merry Christmas traders!

Over the last week or so, I have done absolutely nothing to this portfolio, except resist the urge to sell Ripple at the current ALL TIME HIGH. It’s great to see this coin taking off, but I am still very interested to watch the reaction at the beginning of the month. It allows me to consider two strategies. 1. I use my dollar balance to buy more Ripple at the beginning of next month (assuming that there is a drop). Downside – I miss out on the chance to turnover more dollars into Ripple. 2. I sell everything (XRP) and use all my profit to buy more Ripple at the beginning of next month. Downside – Ripple doesn’t drop and rallies without me and I lose out on growth.

I am thinking option 1.

18/12/2017

I have sold 2000 Ripple to bank some profit.

The thought process is fairly simple here. We have exploded way beyond my expectation on Ripple in a very short period of time and I want to take some profit. If the market retraces, then I can reinvest the profit to buy more Ripple for a cheaper price. If the market continues to rally, then I have dollars to invest in something else and I can watch the profits on my remaining Ripple grow.

I have a number of coins on the short list to watch, but more specifically I think it’s time to research other ways to select coins. I think I have a strategy developing on how to pick trading opportunities.

14/12/2017

Wow, Ripple just reached 0.90 per coin, nearly getting to a $1, which means the current portfolio value is over $3000!

This is crazy, I have recently noticed that I have been selling my coins a little bit too early, so I have taken the decision to hold the ripple coins through the potentially painful-to-watch-pullback. The alternative option was to sell the stake for a massive profit and then wait for the pullback and reinvest the coins. This will enable me to buy more coins and turnover even more profit when the rally again. A good strategy. But one which has failed me on LiteCoin, IOTA and EOS so far.

So this time I have decided to keep my ripple stake.

07/12/2017

Decision made, invest the rest of the money into Ripple.

Bought 2927.20 Ripple @ approx 0.205

So why Ripple? Well, I like the fundamentals. It is an advanced block-chain technology that aims to rival the SWIFT system that banks currently use. They have the monopoly on international payments, but they are expensive, slow and unreliable. Ripple claims they can solve that problem.

And they are cheap – under $0.25 a coin

The main concern with Ripple is the supply. They have created 100,000,000,000 (hundred billion) coins and they will not be mined, like other crypto currencies. Instead, they have placed 55 billion coins into ‘escrow’ and are releasing one billion a month into circulation. This will ensure supply is high, so demand will really have to ramp up in order to outgrow supply.

04/12/2017

IOTA has just exploded through the $1 level and hit $2.50

I woke up to yet another doubling on the account and I am genuinely shocked, again. So this time I decided to sell the coins, bank the profit and place an order to buy more IOTA at $1, assuming that it will retrace. And wait a minute, EOS has just exploded too, so it’s time to sell them and buy more DATA, perhaps keep some dollars to the side to look at a better new investment idea.

However the price has already dropped, it is unlikely going to return to that price for some time

Sold 301.093 IOTA @ 2.1846

Sold 9.5418 EOS @ 3.8269

Bought 924.1386 DATA @ 0.10176

PORTFOLIO UPDATE

$600 USD

1348 Ripple

1090.55 DATA

15/09/2017 – 22/11/2017 Updates

It’s been a while since I updated this, so here are the changes so far:

Bought and sold 45 RRT with leftover USD – but they didn’t move anywhere so I sold them for zero profit

Bought 9.5418 EOS @ 0.55669

Sold 52 Ripple to make funds available so I could buy streamr DATA coins

Bought 166.4114 DATA @ 0.07295

Time to tart up this page a bit

04/09/2017 – 05/09/2017 – IOTA

I have been occasionally referring to the crypto portfolio in the DaxTrader articles, webinars and summary videos, go back and check those out if you are interested in following the progress.

Well, I decided that there was no point in holding any cash, because it’s not like I am going to earn any interest from it. So let’s buy more coins! It seems it’s discount day on IOTA, it’s now less than 50 cents. That’s my cue to buy.

PURCHASES

250 IOTA @ 0.4537

17 IOTA @ 0.58331

400 Ripple @ 0.20285

PORTFOLIO

$6 USD

1400 Ripple

301.093 IOTA

29/08/2017 – More Ripple

I decided to walk away from this, to do some research on the coins available.

There is a brilliant site called: coinmarketcap.com which displays loads of geeky stats for me, and it publishes the websites of the coins and the vitals. So researching the coins is really easy, using this site.

I have made a decision. I am going to invest some of those profits into Ripple and hold some cash back. I like their tech. It’s like a Blockchain challenger to SWIFT, the international payment operator. The story goes that Swift is slow, expensive and unreliable and a newer cheaper, cleaner, better, more secure version is ready to challenge it. Ripple are that organisation. It could be a holder this one. Long-term holder. Although how long is long-term? I don’t actually know. A year? 5 Years?

PURCHASES

947 Ripple @ 0.2195

PORTFOLIO

$210 USD

1000 Ripple @ various amounts

34.093 IOTA

24/08/2017 – PROFIT

Wow, RRT have just rallied to 0.34!

I own 1230 at a price around 0.07 which were worth $86 and now they are worth $419!!! I genuinely am shocked enough to not know what to do. I am not sure what I was expecting from this project, perhaps I was expecting a 25% return in the year or maybe 50%, to be honest, I never thought about it. But if I sell these coins now, then I have grown the portfolio by over 200% in just over a week!!! A week!

I should probably sell them, shouldn’t I? But, what if they continue to grow? If I get out now, I will lose out on more growth and I will look back on this and think I made a mistake getting out. Is that greed? Probably. What should I decide?

Sell them all, cash out and run!

CURRENT PORTFOLIO

$419 USD

52.57 Ripple @ $0.1683

35.12 IOTA @ $0.945

0 RRT

Just before they rallied to that level I sent a screenshot into the article for the day:

14/08/2017 – 16/08/2017 – The beginning!

Let’s get started.

I am making a few tiny transactions to learn the process and get used to BitFinex. First impressions: it’s a pretty clunky site, not as slick as a typical trading platform that I use, but it is web-based, so I guess it works fine. The black layout is not my preference, but that’s only aesthetics. It embeds a tradingview chart too, which is a nice touch.

Actually, after playing around with it for an hour or so, I revise my opinion, it’s pretty straight forward to get around. I like the security measures they have with the 2FA (2-factor authentication). I downloaded the google authenticator and it’s simple enough. Load up the app, it gives a 6-digit code to type into BitFinex. So log into your BitFiex account, it will ask for the 6-digit code on the second screen, enter that and then you’re in.

They have many currencies and at this stage, it’s safe to admit, that I have nearly no idea what most of them all do. So I guess I need to ask google.

After some google bashing, I like the look of IOTA, Ripple, good tech and potential, let’s start there. I need a really cheap one too, so I can buy loads of them. Let’s go for RRT (Recovery Right Tokens). From what I understand, they are connected to BitCoin that were lost and would likely be based on the value of BitCoin. As I expect that to go up